What happens to the FTSE if the UK becomes Socialist?

Morphoton

Seems to be a perception that previous generations had it easy. Far from it. Every generation faces new challenges.

I agree. A lot of the younger generation complain about having to pay back student loans. However if you were working in the 1970s, after your free education, you would be paying a basic rate of income tax of 30-35% depending on the year which is more than the current 20% plus student loan repayments.

talexuser

Morphoton wrote: »

if you were working in the 1970s, after your free education, you would be paying a basic rate of income tax of 30-35% depending on the year which is more than the current 20% plus student loan repayments.

Not quite so straightforward. Vat was 8% on most consumption, Nat Ins was less, Water rates were already in the Council Rates etc, and graduate starting salaries were good in relation to the standard of living. I bought my first house a year or so after starting work, how many can do that now?

Voyager2002

Malthusian wrote: »

If you want to know what you should be doing with your portfolio in the event of a socialist takeover (the event the OP is worrying about, not a centre-left party increasing the proportion of government spending to 43% from 41%), read Ayn Rand's We The Living about survival in Leninist Russia.


SNIP

Some interesting thoughts. I will merely note that the societies in question were not socialist, but state capitalist. Even if you believed their rhetoric, they claimed only that they were in the process of becoming socialist, not that they were there yet, meaning that conditions inside these countries tell you little or nothing about life in an actual socialist country.

talexuser

IanManc wrote: »

Water wasn't free.

I never said it was free, just the total relative spend was much less than after bills were split up..

Thrugelmir

bostonerimus wrote: »

The UK has had a mixed economy in my life time...ie born in 60s. It's tended away from public ownership , but I hope that certain industries like utilities, health care and transportation will be renationalized as the private model does not work for many customers.

Transportation was a disaster as a nationalised industry.

Apodemus

Thrugelmir wrote: »

Transportation was a disaster as a nationalised industry.

Access to telephony wasn’t great either.

Apodemus

AnotherJoe wrote: »

"The" stock market ? Did you mean the UK stock market ? 5% of the world economy or less.
If yiu are worried about that as an investor, then don't invest in it

Without getting drawn into the bigger question of party political influence on unknown future directions...

I’m not sure that avoiding the UK stock market would be enough to distance ones-self from UK political risk. If increased tax rates were applied to “unearned” income, as was the case in the 70’s, then it would be the domicile of the investor that would matter, not the location of the investment.

If exchange controls were re-introduced then I presume there would be limits placed on investment in non-UK companies or a requirement for an intermediary investment vehicle along the lines of ADRs?

In both cases there could be valid political arguments For and against, but little that most of us could do as individuals to avoid being affected.

HardCoreProgrammer

Personally I think those who want a labour government are naive to the extreme. An extreme left wing government will bankrupt this country, as happened in Venezuela and UK in the 1970s (had to be bailed out by IMF). My former English teacher went abroad in 1970s because the strikes got ridiculous and she had enough of the nonsense. I will do the same without hesitation because they will tax hard working people until the pips squeak (to give to those who have excuse to not work) and I do not want to live in a country held hostage by the unions.

I am also extremely concerned that exchange control will be imposed, so have plans in place to move savings abroad if I sense any possibility that labour may win the election.

bostonerimus

HardCoreProgrammer wrote: »

My former English teacher went abroad in 1970s because the strikes got ridiculous and she had enough of the nonsense. I will do the same without hesitation because they will tax hard working people until the pips squeak (to give to those who have excuse to not work) and I do not want to live in a country held hostage by the unions.

It was the policies and poor economy of the Thatcher years that made me expatriate when I got the chance. So you really can take your pick. The question is "where will you go?" It's getting more and more difficult to move.

talexuser

I can't see how Corbyn could implement even half of his so called Venezuela policies, even if he got in with a majority (which is pretty unlikely). Surely the £ would collapse, and the drop in markets would stop any idiocies soon enough. As soon as people are hit in their pockets the honeymoon would be over pronto.